Fair Value Assessment Outcome This document has been produced by Aviva Insurance Limited in accordance with our regulatory responsibilities as a Product Manufacturer of UK General Insurance products. It is intended for use by our Distributors and not for customers or operational staff. For more information please speak to your usual Aviva representative.
Aviva Insurance Limited. Registered in Scotland, No. 2116. Registered Office: Pitheavlis, Perth PH2 0NH. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Product Value - Information Exchange Template 1 Carrier name Broker name Product name
Reference/UMR [Binder] Reference [Class of Business] Date
Aviva Insurance Limited (Aviva) As set out in the TOBA with Aviva Insurance Limited Management Liability • Management Liability • Pension Trustee Liability N/A Management Liability (Speciality Lines) 08/08/2022
Carrier Information The fields below should be completed by the carrier. The information provided should be sufficient for distributors in the chain to understand the value of the product, the intended target market and those to whom the product should not be marketed. Other information should be included (if relevant) to advise distributors of how their known or expected actions might affect the value of the product. Product information Aviva’s Product Approval Process can be found here. Further information for our distributors about Aviva’s Product Oversight and Governance (POG) arrangements can be found here. In accordance with the FCA PROD Product Intervention and Product Governance Sourcebook PROD 4 Product governance rules a product review and fair value assessment has been completed for the Management Liability product. The product has been subject to Aviva’s full product review process and signed off by our authorised approvers as representing fair value to customers and may continue to be marketed and distributed. There are no concerns in relation to the value or usability of the Management Liability products. This conclusion is based on the volume of complaints received, coverage provided and the metrics analysed being within Aviva’s tolerance. The pricing structure provides value for customers as the main rating factor (expected claims cost) has linkage to the usability of the product. All other rating factors to calculate the technical premium are necessary to provide a sustainable product for the customer. The Management Liability offering is split into 4 covers. These are as follows: - Side A – cover for directors & officers themselves - Side B – cover for the company in respect of its indemnification of directors & officers - Side C – cover for the company in respect of claims against it (Corporate Legal Liability & Employment Practice Liability) - Pension Trustee Liability (as a separate cover) The assessment of fair value included review of the following management information as well as other insight: - Claims Acceptance Rate - Claims Frequency - Average Claims Pay-out - Highest Claims Pay-out - Average Premium - Claims Ratio - Commission Ratio - Expenses Ratio 1
This document is based on the Product Value – Information Exchange Template, version 8 November 2021 (LMA9197), developed by the following trade associations for use by all market participants to meet the requirements of the Financial Conduct Authority’s product governance rules relating to information exchange: the British Insurance Brokers’ Association (BIBA), the London and International Insurance Brokers’ Association (LIIBA), the Lloyd’s Market Association (LMA), the International Underwriting Association (IUA), the Managing General Agent’s Association (MGAA) and the Association of British Insurers (ABI).
Aviva Insurance Limited. Registered in Scotland, No. 2116. Registered Office: Pitheavlis, Perth PH2 0NH. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
-
COR (Combined Operating Ratio) Average Overall Claims Lifecycle Claims Frequency by Peril Regulated Complaints by Outcome
Following the review, we have concluded that the performance of the management information is within agreed tolerance levels or is accepted due to the line of business. Additionally, no issues or actions have been raised through the review process. Target market Aviva have developed ‘Target Market Statements’ to provide you with information about the intended target market, who our products are designed for, who they are not intended to support and how we expect the product can be offered to customers. You can find our Target Market Statements on our Aviva Broker site. They are held here for your reference, kept up to date when the product is changed and reviewed on an annual basis. For commercial lines they can be found here, for personal lines they can be found here. Please inform us where you identify you have consistently distributed our product to customers outside of the intended target market. Types of customer for whom the product would be unsuitable As above, this information is provided in Aviva’s separate Target Market Statement information. Any notable exclusions or circumstances where the product will not respond As above, this information is provided in Aviva’s separate Target Market Statement information and supporting policy summaries. Other information which may be relevant to distributors Please note we do not require Distributors to provide additional information on remuneration or services provided. Aviva will contact brokers separately if data is required that we do not hold. The following is excluded from the review and as a Distributor you must consider: - any additional fees that you charge a customer/client and the effect on the value of the product. - any ancillary products sold alongside the product which may affect the product’s value or duplicate cover provided with our product. Please contact your usual Aviva representative if you have any queries or concerns about the Aviva underwritten product. Date Fair Value assessment completed Expected date of next assessment
18/08/2022 18/08/2023
Aviva Insurance Limited. Registered in Scotland, No. 2116. Registered Office: Pitheavlis, Perth PH2 0NH. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
BCODO16129 08.2022